A LOPES AUDIOLOGY LIMITED

Executive Summary

A Lopes Audiology Limited is a micro-entity with improving liquidity but persistent negative net assets and shareholder funds, highlighting solvency concerns. The company maintains good compliance and governance but has limited operational scale and no employees, raising questions about sustainable business operations. Further financial detail and operational insight are needed to fully assess risk and viability.

A LOPES AUDIOLOGY LIMITED - Analysis Report

Company Number: 13836892

Analysis Date: 2025-07-20 11:33 UTC

1. Risk Rating: MEDIUM
   The company shows improving liquidity but remains with negative net assets and shareholder funds, indicating ongoing solvency pressure. The business is very small (micro entity) and newly incorporated, which suggests limited operational history and scale.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities have reduced from £648 to £90 over two years but remain negative, signaling accumulated losses or undercapitalization.
• No Employees and Limited Operations: With zero employees and minimal current assets (£2,301), operational capacity and revenue generation appear very limited, raising sustainability questions.
• Negative Shareholders’ Funds: Persistent negative equity implies the company may rely on external financing or director support to meet obligations, increasing solvency risk.

3. Positive Indicators:

• Improved Working Capital: Net current assets improved from negative £248 to positive £410, demonstrating better short-term liquidity management.
• Up-to-Date Filings: The company is current with statutory filings and accounts, indicating good compliance and governance discipline.
• Single Director with Significant Control: Stability of leadership with Ms. Aida Francisca Lopes as sole director and PSC may facilitate decision-making and responsiveness.

4. Due Diligence Notes:

• Review detailed profit and loss accounts to assess revenue streams, gross margins, and cash flow generation.
• Investigate the nature and timing of creditor balances and any director loans or guarantees supporting the company.
• Confirm business model viability given zero employees and the professional services SIC code (74909).
• Assess any contingent liabilities or off-balance sheet commitments not reflected in current accounts.
• Verify whether the company has plans to recapitalize or restructure to remedy negative equity.